Investing in real estate is a major goal for some people. However, buying a property when they are first getting started can be a huge leap they are not will to take. Fortunately, there are ways to get started in real estate investing without having to actually buy a property. Here are the best ways to do it:
REITs
One of the best ways to invest in real estate without buying property is through REITs. This stands for real estate investment trusts and is a company that owns income-producing real estate. To invest in REITs, simply buy shares to gain exposure to real estate investing. This allows you to invest in many properties without having to actually buy anything. The company does everything for you, which is why it is so appealing to many first-time investors.
Wholesaling
The only active form of real estate investing that does not require property ownership is wholesaling. Wholesaling is a form of property-flipping that requires intent of ownership. This basically means that an investor will sign a contract to buy a property in which they think is underpriced to quickly sell it to an investor at a higher price for a profit. They usually find homes that require renovations and will appeal to house-flippers. This type of investment gives you a taste of house-flipping without having to flip the property yourself.
Opportunity Funds
A somewhat new type of investment in real estate that does not require buying property is Opportunity Funds. This type of investment was developed through the Opportunity Zone program and was created for private investment in economically distressed areas in exchange for capital gains tax incentives for investors. This way investors can invest in the development of the Qualified Opportunity Zones through Opportunity Funds. This type of investing offers great tax benefits for the investor.
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